Personal Liability and property damage are two common terms in insurance. They are often abbreviated as “PLPD”. Although this coverage is standard in many policies, it is often not clear what it covers. This coverage is an important part of vehicle insurance. If you need to file a claim for an accident, understanding PLPD can help you save money on your insurance.
What’s PLPD?
A PLPD covers two types of damage. The first is personal liability. The second is property damage. Unless you are found to be responsible for the accident, deductibles don’t apply to either PLPD or PL coverage. While your insurance rates might go up if there is a fault, you won’t be responsible for any deductibles in property damage or liability.
Personal Liability stands for Personal Liability. You will be held responsible if you are found to have been negligent or at fault in an accident. Personal liability coverage will pay for the pain, injury, and suffering of the other party if you are found guilty. In your insurance policy papers, the liability is often written as a fraction. This term is also known as Bodily Injury and can be written in fractions like 10,000/40,000. The first number is the amount that must be paid per person, while the second number is the maximum amount that must be paid in the event of an accident. The coverage is determined based on the number of people injured or who were involved in an accident. This means that the policy limits are available to the first person who files a claim.
An example of personal liability:Dan drives while using his phone, but does not know that he just ran a red light. He collides with two other passengers in a vehicle. All three people sustained minor injuries in the accident. Dan’s personal liability limits for the crash are 100,000/300,000. Dan’s personal liability limits are 100,000/300,000. Dan’s negligence for running the red light caused both of them to receive $20,000 each. This claim falls within the guidelines of not exceeding $100,000 per person and no more than 300,000. Dan could be sued by the claimants if the limit is exceeded.
Personal Liability Facts
* Minimums in each state may vary
* The coverage is always for the other side
* The common limits are 100,000/300,000.
PD stands for Personal Damage. Your policy will cover property damage if you cause injury to another vehicle, road signs or real estate. All insurance policies include property damage. This coverage will be listed in your policy papers along with the personal liability. For example it would look like this: 100,000/300,000/100,000. The property damage limit is the last 100,000.
Example of property damage: Sue is driving in extreme weather conditions, and she hits an ice patch on the road. Her car spins out and hits a parked vehicle. The property damage coverage will cover the damage to the parked vehicle. No deductible is required and the vehicle will be fixed.
Property Damage Facts –
* Minimums in each state may vary
* The maximum limit is 100,000
* Insures the property of others damaged by your vehicle
You may find confusing terminology or complicated text in your insurance policy that discourages you from reading it thoroughly. You will be able to use the PLPD limits in your policy to help you in the event of a car accident. Knowing what coverage is available can save you money when dealing with claims.
